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According to some industry estimates, about 40 million cable television households
with analog TVs would be required to get a box upgrade (and pay) for digital cable
service to be converted to analog for viewing on their existing analog TVs.
The bill also excluded language addressing a) a mandate to cable for the must-carry
of DTV multi-channels broadcasters pushed for, and b) the Broadcast Flag. Both
issues would affect directly a broadcaster’s future.
In April 2007, the FCC decided to allow Cable companies to continue their analog
subscriber services even after the Feb 2009 broadcast switchover to digital.
Approved DTV Converter Box Budget for Subsidy
A DTV tuner-box subsidy was also agreed (Senate proposed 3 billion, House $1
billion), and approved as 1.5 billion. The subsidy is to help consumers that rely on
OTA TV broadcasting to obtain a Digital-to-Analog converter box that would allow the
viewing of DTV content on their existing analog TVs.
Consumers that need the economic support to acquire a converter could request up
to two $40 coupons. It was estimated that converter boxes would cost about $60
each in the future; the two coupons cannot be applied to one box.
This would not affect consumers who own integrated digital televisions or subscribe
to satellite services or digital cable services, which service provider already supplies
the necessary decoder equipment.
Converter Box Subsidy Program Updates
Update Jul 06
The U.S. Commerce Department proposed eligibility of an estimated 21 million U.S.
households, for coupons to aid in the purchase of converter boxes, based on an
estimate of the number of households who rely solely on OTA television broadcasts.
Congress passed a law providing an initial $990 million, and as much as $1.5 billion,
to subsidize the purchase of converter boxes that would allow analog sets to receive
digital signals, up to two $40 coupons per household, to which consumers that could
demonstrate eligibility would have to apply between Jan 1, 2008 and March 31,
2009.
The government requested public comment on the proposal. Ideas of limiting the
coupons to low-income families living below the poverty level were suggested.
NAB’s estimate of 73 million TVs not connected to cable or satellite, does not
reconcile with the Government Accounting Office (GAO) estimate of 44 million TVs.
NAB’s representative Dennis Wharton said “we would hope that no broadcast-only TV
sets are forced to go dark during this transition”.
Update 2007
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